A Limited Liability Company or an L.L.C. is a hybrid business entity. It combines the good aspects of a sole proprietorship or a partnership. It offers personal asset protection by separating the business assets from the personal assets.
What are the ways to start an L.L.C.?
The sections below will offer you an overall look into the steps you can follow to incorporate an L.L.C. within Delaware.
• Decide your L.L.C.’s name
To get started, you’ll have to develop a unique and new name for your business. However, before finalizing your L.L.C.’s name, you’ll have to keep a few things in your mind. Firstly, the name should be viable for use. If your business’s name is viable, you can check the compliance of the name with the Delaware business naming standards. Once you’ve passed this phase, you can easily finalize your business’s name.
• Choose a registered agent within Delaware
A registered agent available for service is a business entity or an authorized person who can work and act on your behalf. The business or person will accept legal documents, significant tax forms, legal forms, a notice related to lawsuits, government filings, along other correspondence related to an official government in Delaware. It’s mandatory to choose a Delaware registered agent to form your L.L.C. You must ensure the registered agents are Delaware’s residents or business entities.
• File formation certificate in Delaware
The Delaware formation certificate includes information regarding your company’s name, incorporation filing date, state of incorporation, incorporation officer info and corporate purpose.
The certificate of formation is a legal document that can officially form the business. It includes your L.L.C.’s elaborate details in Delaware. Before you commence filing the forms, you should have the L.L.C.’s name along with registered employees or agents. You’ll have to create a list of specific services offered by the Delaware L.L.C. You can attach the list’s copy along with Name Reservation Certificate.
• Create a Delaware L.L.C. operating agreement
An L.L.C. operating agreement is a type of legal document that highlights the partnership or proprietorship along with your L.L.C.’s overall operating processes. It’s an indispensable internal document that ensures different business owners are aligned on the same page in terms of operation. As a result, the document aims to mitigate the likelihood of future disputes. In the context of start an LLC operating agreement, Delaware doesn’t ask you for a complex operating agreement. However, you should have an agreement that includes all the details related to your business’s operation. The document can be of great help if you’re willing to dissolve your Delaware L.L.C. down the line.
• File a Delaware LLC EIN
The E.I.N. or also referred to as the Employer Identification Internal Revenue Service or I.R.S. issues issued by an Internal Revenue Service or I.R.S. It can ease out the task of identifying different types of business for tax estimation and other taxation purposes in general. Its operation procedure is similar to a social security number meant for business taxes. An employer identification number is vital for active businesses or any kind of business. E.I.N. is necessary whenever the L.L.C. is willing to hire an employee. According to certain rules and regulations, recruiting employees within Delaware L.L.C. has to be done. Businesses must be aware of the rules before recruiting an employee. To acquire FEIN or E.I.N., businesses have to fill up an online form or through the mail. Next, the form has to be submitted to an I.R.S.